Jim Sinclair’s Commentary

It looks like China just rid themselves of another $16 billion USD in exchange for energy.

Now where are the F-TV talking heads yelling that China is prisoner to the US dollar?

Venezuela and China agree $16 billion oil deal: reports
By Polya Lesova, MarketWatch
Sept. 17, 2009, 5:34 a.m. EDT

FRANKFURT (MarketWatch) — Venezuela’s President Hugo Chavez announced that China will invest $16 billion in an oil exploration project in the Orinoco River region, according to media reports.

The news comes only a few days after Venezuela signed a $20 billion joint venture agreement with a group of Russian oil companies to develop the Junin 6 deposit in the Orinoco basin, reports said.

Chavez reportedly said the two deals will increase Venezuela’s oil production by about 900,000 barrels a day.

A member of the OPEC cartel, Venezuela is one of the top suppliers of U.S. oil imports and is among the top ten crude-oil producers in the world.

Oil is critically important for Venezuela, as it accounts for over three-quarters of total export revenues, about half of total government revenues and around one-third of total gross domestic product, according to the U.S. Energy Information Administration.

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